DUBAI: Most major Arab stock markets rose on Sunday as bets related to the Expo 2020 world’s fair boosted Dubai to a fresh five-year high, while Egypt rose after the government announced a date for a referendum on the country’s new constitution.

The Dubai index climbed 0.9 percent to 3,187 points.

Mubasher Financial Services said in a report that Arab markets were benefiting from “a rerating against the backdrop of strong economic growth and abundant liquidity”.

It predicted further gains next year, particularly in Egypt - provided that political stability is restored - and in Qatar and the United Arab Emirates; those two countries will be upgraded by MSCI to emerging market status next May.

Dubai has continued to climb since it won the right two weeks ago to host the Expo; real estate and construction-related shares that could benefit from Expo contracts rose once more on Sunday. Arabtec jumped 3.3 percent.

Many fund managers think the benefits from the Expo are now largely priced into stocks, but there is massive interest — some among foreign investors — in buying on dips, so the market has not entered any lasting correction.

This was seen in the performance of Emaar Properties EMAR.DU on Sunday. The company said it would discuss on Tuesday whether to convert bonds into shares, after bond holders asked for the conversion; Emaar issued a $500 million convertible bond in 2010. The initial conversion price was set at the equivalent of 4.75 dirhams per share, according to the original issue prospectus.

But the stock largely ignored the prospect of dilution. After opening slightly lower, it rose 0.3 percent in active trade to 7.38 dirhams.

Egypt continued its uptrend, gaining 1.1 percent to 6,679 points, its highest level since January 2011.

Capital Economics cited a growing number of signs that the Egyptian economy was turning around after slumping this year, though it added that many risks remained.

Kuwait’s market continued to underperform the region, dropping 0.8 percent to 7,641 points as regional money focused on more dynamic economies. The drop left the index testing major support on its 200-day average; any clean break would suggest a deterioration in the market’s long-term prospects.